SoundThinking Inc (NASDAQ:SSTI) reported its third-quarter 2025 financial results, revealing a performance that fell short of analyst expectations on key metrics. The company, a provider of public safety technology solutions, also revised its full-year revenue guidance downward, contributing to a significant negative reaction in after-hours trading.
Earnings and Revenue Performance Versus Estimates
The company's financial results for the third quarter of 2025 missed the mark set by Wall Street analysts. The primary discrepancies between reported figures and estimates were in revenue and earnings per share, which are critical indicators of the company's financial health and operational efficiency.
- Revenue: SoundThinking reported revenue of $25.1 million for the quarter. This fell short of the analyst consensus estimate of $28.5 million.
- Earnings Per Share (EPS): The company reported a non-GAAP loss per share of $0.16. This was wider than the estimated loss of $0.06 per share anticipated by analysts.
The dual miss on both the top and bottom lines suggests challenges in both sales execution and profitability during the quarter. The wider-than-expected loss indicates that operational costs may have been higher than projected relative to the revenue generated.
Market Reaction and Stock Performance
The market's response to the earnings release was decisively negative. Following the announcement, the stock experienced a sharp decline in after-market trading. The immediate sell-off reflects investor disappointment with the quarterly results and the subsequent guidance revision. This recent drop adds to a broader trend of weakness for the stock, which has seen declines over the past month.
- Immediate Reaction: The stock was down approximately 11.6% in after-hours trading following the earnings release.
- Recent Trend: This negative momentum compounds a difficult period for shareholders, with the stock down nearly 28% over the last month.
Updated Financial Guidance and Analyst Expectations
A significant development from the earnings report was the company's decision to lower its revenue outlook for the full 2025 fiscal year. SoundThinking updated its previous revenue guidance range of $111.0 million to $113.0 million down to approximately $104.0 million. This revised forecast sits notably below the current analyst consensus estimate for full-year 2025 sales of $113.4 million. The downward revision likely served as a key driver behind the intensity of the negative market reaction, as it signals to investors that the headwinds faced in the third quarter are expected to persist for the remainder of the fiscal year.
Looking ahead to the fourth quarter of 2025, analysts have projected revenue of $29.6 million and a slight profit. The company's ability to meet or exceed these estimates will be closely watched as an indicator of its recovery trajectory.
Summary of Key Announcements
The core takeaways from SoundThinking's recent earnings press release are clear. The company disclosed financial results for the third quarter of 2025 that failed to meet analyst expectations for both revenue and earnings per share. Concurrently, management provided a substantially reduced revenue forecast for the full 2025 fiscal year, attributing the change to current operational challenges. These two factors combined to create a negative sentiment among investors, leading to a sharp decline in the company's stock price.
For a detailed look at historical earnings, future estimates, and analyst projections for SoundThinking Inc, you can review the data available on its earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an offer to solicit any transaction. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
